3. Cashmere
Industry
Overview
RAW
MATERIALS
• Major
Producers:
China
75%
of
world’s
total
• Largest
importers:
Italy,
United
Kingdom,
Japan
• Largest
exporters:
Mongolia,
Kazakhstan,
Belgium,
Turkey
MARKET
TRENDS
• A
shrinking
industry,
while
demand
in
China
is
increasing
• Increasing
prices
and
scarcity
of
raw
materials
• Growing
demand
for
Label
standards
CASHMERE
PRODUCTS
• Italy:
leader
in
luxury
cashmere
market
• China:
a
low-‐end
market;
expectaLons
of
cooperaLon
with
Italian
designers
in
the
years
to
follow
COMPETITORS
• Direct:
Loro
Piana
and
Brunello
Cucinelli
+
small
cashmere
bouLque
• Indirect:
Renowned
luxury
companies
(Gucci,
Louis
VuiSon,
Prada)
SettefiliCashmere
4.
Desires
• Comfortable,
long-‐lasLng
and
high
quality
fabrics
• Unique
design
and
style
• FuncLonal
website
with
nice
design
Qualita<ve
Research:
12
In-‐depth
Interviews
Target
Male,
age
20-‐40
and
age
40+
High
income
($50,000
–
$150,000
yearly)
Intelligent,
confident,
classy,
art-‐conscious
SettefiliCashmere
Target
and
Qualitative
Research
It
is
not
who
makes
it,
but
how
it
is
made!“
”
6. Settefili
v Italian
heritage
v High
quality
products
v Family
company
v Hand-‐made
products
v Transparent
structure
v No
outsourcing
v Unique
designs
SettefiliCashmere
v Low
brand
awareness
v Poor
distribuLon
v Low
capital
v Weak
communicaLon
v Low
funcLonality
of
the
website
v Lack
of
accessibility
to
company
representaLves
v Penetrate
new
markets
(Chinese)
v Increase
visibility
and
loyalty
v Enhance
brand
image
v Develop
further
womenswear
and
accessories
line
v Website
development
v Presence
at
Cashmere
events
v Dominance
of
Chinese
suppliers
v Strong
compeLLon
among
Italian
cashmere
companies
v Strong
visibility
of
renowned
luxury
brands
v Cultural
and
economic
barriers
v Increasing
raw
material
prices
Strengths
SWOT
Analysis
Weaknesses
Opportunities Threats
7. SettefiliCashmere
Focus
on
China
–
Why?
v Second
largest
market
world
for
luxury
goods
v PotenLal
to
become
the
largest
market
as
early
as
the
end
of
2012
v In
2010,
sales
of
cashmere
goods
increased
by
more
than
30%
9. Consumer
Culture
and
Trends
in
China
SettefiliCashmere
v Standing
out,
while
fieng
in
v Curiosity
regarding
foreign
cultures
v High
EffecLveness
of
EmoLonal
MarkeLng
v High
reliance
on
online
purchases
and
social
media
WESTERN
INFLUENCES
TRADITIONAL
VALUES
SOCIALIST
SYSTEM
A
Mel<ng
Pot
Culture
10. PresLge;
dignity;
honor;
respect;
status
Importance
of
public
display
Standing
out
while
fieng
in
Mian
Zi
(Face)
“Made
in
Italy”
“Gil
giving
is
an
art”
Business
Giling
“…
Especially
Chinese
(consumers),
who
are
ready
to
pay
high
price
tags
for
a
genuine
brand
that
mirrors
the
culture
of
our
product”
(Michele
Tronconi,
president
of
SistemaModa
Italia)
“A
way
by
which
Chinese
consumer
overcome
the
internal
conflicts
between
discreetness
and
luxury
aetude.”
(Pierre
X
ao
LU)
Particularities
of
the
Chinese
Consumer
Culture
28%
36%
11%
8%
Main
Chinese
ciLes
Secondary
Chinese
ciLes
Hong
Kong
Taiwan
Percentage
of
business
giFs
out
of
total
luxury
goods
acquisi<ons
2011
Source:
Analysis
by
Accenture
on
KPMG
data,
“Luxury
experiences
in
China”,
2011
SettefiliCashmere
11. Chinese
Individual
Conflicts
in
Consumption
SeQefili’s
discreet
and
clear
designs
Opportunity
to
customize
a
product
and
its
packaging
on
SeQefili’s
website
SettefiliCashmere
VS
Frugal
opposed
to
extravagant
lifestyle
Desire
for
consumer
involvement
in
producLon
process
Demand
for
discreetly
designed
products
-‐
no
overt
display
brand
logos
Fashionable
Mainstream
Exclusive
Niche
12. Intercultural
Conflicts
and
Solutions
SettefiliCashmere
A
warm
wish
(e.g.
woaini)
inscribed
on
SeQefili’s
product
packaging
An
introduc<on
of
a
cultural
mo<ve
-‐
collabora<on
with
local
ar<sts,
who
adds
a
detail
to
the
products
EMERGING
CULTURAL
CONFLICTS
v Possible
disturbance
of
local
culture
FAMILY
-‐
EXPRESSING
LOVE
v Italy:
explicitly;
customary
v China:
not
linguisLcally,
implicitly
14. Catalogue
SettefiliCashmere
Where
v BouLques
in
the
Luxury
shopping
centers
(e.g.
The
MixC
Shenzhen)
v Airport
bouLques,
(e.g.
in
Beijing,
HongKong
and
Shanghai)
Mo<ves
v Contact
distributors
(crucial
for
development
of
the
company)
Objec<ves
v Reaching
a
large
distribuLon
network
in
a
cost-‐effecLve
way
v PromoLng
brand
values
and
brand
image
effecLvely
v Nurturing
a
relaLonship
with
potenLal
buyers
for
the
future
v Increasing
visibility
at
the
bouLque
level
15. SettefiliCashmere
Catalogue
(2)
Core
Values
Sensual
and
Visual
Experience
Story
around
number
“7”
and
ProducLon
Process
Website
Contact
Info
and
DistribuLon
Map
16. Hong
Kong
–
Cashmere
World
Fair
SettefiliCashmere
25
–
27
September
2013
MOTIVES
v The
biggest
cashmere
event
in
the
world,
where
only
leaders
in
the
industry
are
present
OBJECTIVES
v Increase
Brand
Awareness
v Get
in
touch
with
new
trends
v Meet
exisLng
customers
v Capture
new
buyers
(both
B2B,
B2C)
v Connect
with
new
suppliers/
distributors
v Benchmark
compeLtors
18. SettefiliCashmere
Why
a
giF
box?
v Gil
giving
–
deeply
rooted
in
Chinese
culture
v Habit
of
expressing
love
through
acLons
v Curiosity
and
aSracLveness
around
“Made
in
Italy”
Objec<ves
v Increase
Brand
Awareness
v Communicate:
“Made
in
Italy”
and
a
presLgious
image
v Box
collecLng
for
decoraLon
Gift
Box
–
“Gift
giving
is
art”
19. SettefiliCashmere
Gadgets
Small
size
v Given
to
visitors
of
bouLques
v “Made
in
Italy”
label
v “given
with
love”
v 7
versions
with
core
values
Objec<ves
v Brand
loyalty,
awareness,
equity
v Enhancing
luxurious
brand
image
v Reminder
of
the
brand
(website
link)
Chinese
consumers
are:
v Gadget
collectors
v Impacted
by
EmoLonal
MarkeLng
v Curious
20. SettefiliCashmere
Collaboration
with
Local
Artists
Cultural
detail
introduced
by
a
Chinese
arLst
Subtle
introducKon
of
the
“Italianità”
by
adapKng
it
to
the
Chinese
culture,
while
solving
any
emerging
intercultural
conflicts
Personalized
Need
of
“Standing
out
,
while
fiRng
in”
Support
of
the
local
culture
Marginally
broadening
the
design
variety
Unique
21. Collaboration
with
Companies
Approaching
companies
with
employees
fiTng
SeUefili’s
target:
Architecture
companies
(e.g.
Wong
&
Ouyang
Group
or
Massimiliano
Fuksas
Group
)
Aspects
v Create
purchase
incenLves
–
discounts
for
Business
gils
v Channel
future
developed
line
of
accessories
Objec<ves
v Increasing
sales
v Added
brand
value
v Increasing
brand
visibility
and
awareness
v SeSefili
becomes
linked
to
the
image
of
a
renowned,
successful
business
SettefiliCashmere
22. v Increase
awareness,
becoming
more
global
v Increase
brand
equity
v Increase
sales
(online)
v Consumer
behavior
monitoring,
CRM
SettefiliCashmere
Order
+
Customize
online
SHORT
TERM
Video
presentaLon
“Products
and
Core
Values”
Video
team
and
producLon
Comments
and
Feedback
DistribuLon
map
LONG
TERM
News
about
new
collecLons/events
Video
“CollecLons
in
CollaboraLon
with
ArLsts”
Website
Improvements
23. Online
Customization:
Product
and
Box
Why
Customiza<on?
v Mian
Zi
v standing
out,
while
fiRng
in
Objec<ves
v EmoLonal
relaLonship
with
consumer
v Add-‐on
customizaLon
experience
v Gil
–
more
valuable
and
desirable
SettefiliCashmere
DESIGN
ACCENT
KNITTING
PATTERN
PERSONALIZE
(opLonal)
COLOUR
24. IniLaLve
CalculaLon
Cost
High-‐quality
catalogues
5€
x
200
catalogues
1,000€
Cashmere
World
Fair
approx
400€
Gil
Boxes
5€
x
70
boxes
x
20
bouLques
7,700€
Gadgets
0.5€
x
1000
gadgets
500€
Website
improvement
approx
5,000€
Total
13,900€
SettefiliCashmere
Budget
The
budget
was
an
important
limit
to
our
work